Brexit-hit pound gives drinks giant Diageo reason to cheer

Ben Woods

Drinks giant Diageo has toasted a brighter outlook after securing a hefty jump in sales and profits thanks to the Brexit-hit pound.

The owner of Johnnie Walker whisky, Smirnoff vodka and Guinness stout said operating profit surged 25 per cent to £3.6 billion for the year ending in June, while reported net sales climbed 15 per cent to £12.1bn.

The group was boosted by healthy growth in international markets and strong Scotch sales, while sterling’s weakness laid the foundations for an extra lift when translating overseas earnings back into pounds.

Stripping out acquisitions and currency movements, annual operating profit grew by 6 per cent to £3.6bn.

Chief executive Ivan Menezes said: “We have delivered consistent strong performance improvement across all regions and I am pleased with progress in our focus areas of US spirits, Scotch and India.